Liquidity Mining Rewards v2

  • Liquidity locusts (or loyalty), also referred to as “stickiness”
  • Token loyalty, or opportunistic dumping
  • What are you buying? (In our example CRV)
  • What is the strike price? (aka, how much are you paying for it? In our example $2 ~ or 2 DAI)
  • When is the expiry? (normally some future date, in our example, expiry was current timestamp/now)
  • strike price = spot - 50%
  • expiry = current date + 1 month
  • Decreased liquidity locusts
  • Decrease selling pressure
  • Natural price floor (twap - discount % over epoch)
  • Additional fee revenue for DAO/token holders

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store